Open a company in China? Tempting! But you need to know the specifics. Open a representative office in China. UraFinance services. Requirements for opening a company in China

China is a country with a very healthy investment climate. Convenience and efficiency of administrative services, minimal state control, political stability, cheap labor resources and the general focus of the economy on development - all these aspects attract investors to China from all over the world. Russian businessmen also feel confident in the Chinese market, so active entrepreneurs are looking with interest at the opportunity to register a company in China and thus start a potentially profitable project.

How Russian business makes money in China

In fact, Russian entrepreneurs have the right to open companies in China engaged in any type of activity. But it is precisely the freedom of choice and the abundance of opportunities that often make the chooser look for an answer to the question: what is better?

The most common areas of business in China for Russians are:

• catering services for Russian and foreign tourists;
• consulting and for enterprises working on export-import operations with Chinese suppliers and manufacturers;
• translation agency;
• Beauty Salons;
• fitness studios (see,);
• recruitment agencies.

All of these services are highly valued in densely populated Chinese cities, where business life is in full swing, where there are thousands of representative offices of companies and where active people from all over the world come together.

But the choice of the direction of activity depends not only on the assessment of the prospects of a particular business. Russian entrepreneurs need to understand that competition in China is very high, it is possible to win the trust of customers only if they are offered a truly unique approach to solving certain household or industrial problems.

Therefore, when choosing which business to open in China, experts recommend starting solely from the product that a Russian entrepreneur can offer to the Chinese market.

How to register a company in China

The lack of knowledge of the Chinese language and the Chinese administrative system is the first possible difficulty for an entrepreneur who has decided to officially open his business in China. If there is no language problem, then things will go faster, but if there is, then you will have to hire an interpreter or order registration services from a consulting firm. By the way, there are plenty of such firms in every major Chinese city. And the cost of registration services is almost the same everywhere - about 500 US dollars.

Choice of form of enterprise

The choice of the legal form for the future enterprise is also best done after negotiations with the consultant, since each specific business scheme has its own implementation features in the Chinese legal field. Only a specialist with experience in organizing various business processes can help an entrepreneur choose the right legal form, which will give maximum entrepreneurial freedom and will not be burdened by strict control from the Chinese controlling structures.

Today, a Russian entrepreneur can open in China:

• representative office of a Russian company;
• joint Russian-Chinese enterprise (founders - Chinese and Russian entrepreneurs);
• company with foreign capital.

Each of these organizational and legal forms has a number of features that affect the formation of the company's ownership structure, the right to own and dispose of property in China, determine the permissible types of activities and validity periods.

Thus, representative offices of Russian enterprises in China do not have the right to engage in entrepreneurial activities in the Chinese market. Their functions may include organizing and exhibition activities, assisting company employees when visiting China, as well as providing other business processes (checking and sending goods, processing documentation and establishing contacts with suppliers).

As for joint Russian-Chinese enterprises, they also have a number of special requirements. In China, there are two types of joint ventures (JVs) with foreign companies or individuals: joint capital enterprises and cooperation companies.

The first form assumes that the investor only provides capital to the Chinese side and has a number of powers to control the use of investments, and also has the right to receive profit. The second type of joint venture involves the combined work of Chinese and Russian entrepreneurs on one project.

Registration deadlines and required documents

It should be noted that the entire procedure for registering a company in China takes about three months. For successful registration, the entrepreneur must carry out the following preparatory steps:

• form the initial staff (director, supervisor, legal representative);
• open a bank account (optional in China);
• rent a commercial or industrial real estate;
• write a business plan or feasibility study for your project (see how to write);
• determine the size of the authorized capital (the minimum for activities in the service sector is about $75,000, for trade - from $200,000).

After successfully completing tasks preparatory phase you can start collecting documents. For registration you will need:

• three sets of notarized copies of the statutory documents of the parent Russian company or identity documents individual(papers must be translated into Chinese);
• written recommendations from the bank where the foreign investor has an account;
• certified copies of documents with translation into Chinese for all required employees and for the investor;
• feasibility study;
• office lease agreement.

All documents are submitted with an application in Chinese, according to which the founder agrees to open a company with foreign capital in China.

How much money do you need, and how quickly can you expect a profit

Obviously, the implementation of such an idea as opening a business in China will require serious financial costs.

Important! It is not necessary to pay the entire authorized capital at once. The entrepreneur must pay in the first three months after registration only 15% of the amount stated in the Charter of the enterprise, the rest can be paid within one or even two years after registration.

The total cost of registering a company is about $3,000. The cost of renting one square meter of office real estate (together with the cost of utilities) is about 7 US dollars per month. Monthly rent behind two-room apartment– about 200 US dollars. Medium wage office worker in China - 700 US dollars.

The total monthly cost of living and maintaining an office in China will be at least $3,000.

In order to quickly organize an active commodity-money turnover, you will need to invest at least 20,000 US dollars in the business. The margin on goods and services in China is quite large and often amounts to 100%. Conventionally, if you invest $ 20,000 in a business every month, then your earnings will be the same. If you subtract the main expenses, then there will be about $ 10,000 in profit.

China is an actively developing promising market with cheap labor force and lots of resources. It is not surprising that business in China is an attractive area for foreign investors and entrepreneurs, since the country's legislation and policies allow them to open and successfully develop their business here.

• Copyright Law of the People's Republic of China;
• Law of the People's Republic of China "On Bankruptcy of Enterprises";
• Law of the People's Republic of China "On Contracts";
• Law of the People's Republic of China "On Companies";
• Law of the People's Republic of China "On contractual joint ventures of Chinese and foreign capital";
• Law of the People's Republic of China "On corporate income tax";
• Law of the People's Republic of China "On joint ventures of Chinese and foreign capital";
• PRC Law on Foreign Capital Enterprises;
• Law of the People's Republic of China "On industrial enterprises public property";
• Law of the People's Republic of China "On Advertising";
• PRC Law on Promotion of Small and Medium Enterprises;
• Law of the People's Republic of China "On partnerships";
• PRC Trademark Law;
• Law of the People's Republic of China "On Labor";
• Law of the People's Republic of China "On the employment contract";
• norms and rules "On the registration of permanent representative offices of foreign enterprises";
• rules and regulations for the application of the Law of the People's Republic of China "On Share Joint Venture of Chinese and Foreign Capital".

In addition, the labor and tax laws of the PRC, as well as local provincial laws governing how to enter into contracts in China, how to make deductions, and how to resolve disputes, should be taken into account.

The most profitable areas for business development in China

The economic growth of the PRC allows not only local but also foreign entrepreneurs to earn good money in the country. Business development in China can go in one of three directions:

• export and sale of Chinese-made goods;
• production of goods in the country;
• provision of services in the Chinese market.

Moreover, good profits are guaranteed not only for large companies, but also for small enterprises.

Promising activities in China for businessmen

1. Mediation. One of the most popular ways to make money in the Chinese market. Goods purchased in the PRC for almost nothing bring good profits to those who resell them. This can be dropshipping (selling goods in an online store ordered on Chinese sites) or a small shop in a rented room. Disposable and stationery, hair accessories, glasses, haberdashery.
2. Processing of fish and production of fish products. The modern fish business in China is a huge processing plant for fish raw materials supplied from the Russian Federation and other countries. Buying raw fish, China produces fillets and regulates world prices for finished products. One of the industry leaders is Dalian Province. The import of technology and cheap labor make the business profitable, and investments in it are promising. Another direction is fish farms where mullet, Austrian perch and other types of fish are grown. One of the industry leaders is Hong Kong. About 1,000,000 individuals live here in 110 ponds. Sale and export of products to other regions is a profitable investment. As regards the actual fishing, then about two thousand Chinese refrigerated ships enter the world's oceans every year. The monopoly here is China National Fisheries. But private enterprise is also developing. The main fishing region is the South China Sea.
3. Entertainment and service industry. First of all, it is a restaurant, gambling and hotel business in China. The large population of the country and its high employment increase the demand for quality and inexpensive restaurant food. Eating out for the Chinese is not a luxury, but the norm. At the same time, not only local, but also Western cuisine is popular. But the Chinese do not like to spend money on Western delicacies: expensive establishments are a luxury that middle-class people or foreigners can afford. The gambling capital is Macau. In other regions, it is practically not developed, and in some it is not encouraged at all by local authorities.
4. actively developing and flower business in China, and bouquets are very often sold through Internet sites. Buying flowers at the wholesale market in Guangzhou and reselling them to other regions, you can make great money. But you should take into account the risks: this is a perishable product, so losses are inevitable.

Business Ideas for Entrepreneurs

If you want to "be in trend" in the modern Chinese market, you should pay attention to the following rather profitable ideas that suggest how to develop a business in China as quickly as possible.

1. wedding photography services

   Wedding photography in China appeared only in 1992 and is at the peak of popularity. This service can be provided by both agencies and private entrepreneurs who have opened a company in their own name. average cost wedding photo shoot - $ 1,500. At the same time, the costs associated with it for a private photographer are about $ 300. The benefit is obvious.

2. Glasses production

   Making optics like some others current business ideas in China in 2019, is very popular. The reason is simple: very low cost of raw materials and cheap labor. As a result, glasses, the cost of which is $3, are sold for $58. The profits of the companies are solid, but the competition is also great.

3. Drug production

   The most popular means for weight loss. Over 20,000,000 Chinese suffer from obesity. In addition, more than 13% of the country's population are people over 60 years old with certain health problems. That is why the production of medicines always pays off.

4. Online games and game industry

   Among the Chinese, there are a huge number of fans to sit in an Internet cafe with their favorite online game. The net profit of such establishments is 25-50%. And this is not surprising, because entrepreneurs do not bear the cost of transport or warehousing.

5. Sale of donkey skins

   Donkey skins are in great demand in China. Donkey skin gelatin, which is credited with miraculous properties, is actively used in traditional medicine. The donkey skin business in China is developing most actively in Dong'e, where more than 100 factories for the production of a valuable substance have been built.

6. Sale of cosmetics

   The markup on beauty products in China sometimes reaches 90%. At the same time, the industry ranks fifth in the country in terms of consumption of products and services by the population. The industry is growing at 15% per year.

7. Manufacture of toys and goods for children
   The profitability of the business for the production of toys and goods for children is 60%. A large increase in the birth rate makes goods in demand, and the industry extremely profitable.

Applying for a business visa to China

To carry out economic activities in China, foreigners require a special visa. For a long-term visit, a business visa to China for a year is suitable; in 2019, foreigners can stay in Hong Kong without a visa for up to 14 days, but this option is more suitable for tourists and those who are just looking at the Chinese market. In addition, a short visit great option for those who buy goods in bulk in China.

There are two types of visas to China that allow you to work and earn income in the country:

A business visa to China is issued for Russians and citizens of other CIS countries at the Consular Section of the Chinese Embassy. Submission of documents is also possible through specialized firms. A visa can be single entry, for 30 or 90 days with an entry corridor of three months, or double/multiple entry, for 30, 60 or 90 days with an entry corridor of three or six months. In addition, it is possible to obtain a business multivisa for one or two years with a subsequent extension.

The cost of obtaining a visa depends on its type and on the citizens of which country it is issued. So, the price of a business visa to China for Russians will vary between $34-167. The cost of registration for citizens of other states is $ 34-102. Established fixed fees for visas for US citizens - $152, Romania - $34-81, Serbia - $3, Israel - $31, Canada - $123.

Visa processing is carried out within 5 working days. An urgent visa can be obtained in 1-2 days.

A package of documents for obtaining a business visa to China

When applying for a visa, you will need to collect two packages of documents: mandatory and those required by a specific type of visa. A single set is provided to the Consular Section of the Chinese Embassy. Errors, corrections and inaccuracies in the documents are not allowed. At the same time, it should be borne in mind that an annual business multiple visa can be requested only if there are two used short-term business visas, and for two years - if there are two used annual ones.

Depending on the type of visa you need to apply for a business visa to China, the following documents are submitted:

An official invitation to China for a business visa must contain the following information about the invited person:

• Date of Birth;
• indication of the purpose of the visit;
• dates of arrival and departure;
• information about the place of stay in the territory of the PRC and the planned route;
• information about the inviting party (name, contacts and legal address of the company, stamp and signature of the legal representative).

China business visa extension

A business visa can only be extended once. The procedure is carried out in China in local branch migration service of the region of registration of the arrived foreign citizen. The application must be submitted 7 days before the expiration date of the visa. The visa is extended for a period not exceeding the initial validity period of the visa.

To do this, you will need the following package of documents:

• original and copy;
• hotel registration certificate or a copy of registration from the police;
• a copy of the extended visa;
• completed application form of the migration service;
• a bank statement confirming that you have at least $3,000 in your account.

Business migration for permanent residence in China

Opening your own company in China allows you to take a leadership position in it and provide jobs for local residents, which is a definite plus for any foreigner who wants to move to China for permanent residence.

To start a business in China, you will first receive the most common business visa, after which you can apply for a visa for a year, and then for two, and extend it for another two years. After four years of successful activity, provided that you have no problems with the law, you pay taxes regularly and provide jobs for at least ten Chinese citizens, you will be able to apply for a permanent residence permit in the PRC for foreigners.

Work opportunities in China for foreigners on a business visa

Specific opportunities in terms of earnings for foreigners in the PRC directly depend on the type of visa received. If you have a Z visa, you will be able to work only as an employee or work in private practice through an agency. In fact this Work Visa. You will need an M visa to start your own business, service firm or shop.

The chances of finding a job and attracting profitable partners significantly increase knowledge of the Chinese language. If you are going to work on a business visa in China, you should at least master spoken English.

As for the field of activity, services in the field of computer technology and programming, web design and translation are extremely in demand. Good engineers are in demand. Suppliers of foreign raw materials and intermediaries who buy wholesale Chinese consumer goods for subsequent resale are actively developing.

Forms of ownership for foreign enterprises in the PRC

To a certain extent, the possibilities of doing business in China depend on the form of ownership that you choose for your enterprise.

Joint venture with Chinese partners

The functioning of such enterprises is regulated by the Law of the People's Republic of China "On joint ventures with Chinese and foreign capital." Joint ventures are companies in which the share of foreign capital is at least 25%, and there is also one foreign and one Chinese investor. Allowed capital is ¥1,000,000 ($149,720).

Permitted areas of activity for joint ventures: energy, service industry, chemical industry and pharmacology, metallurgy, construction, electronics, animal husbandry and Agriculture, textile, food and light industry, production of packaging materials.

Representative office of a foreign company

The work of representative offices of foreign companies in the PRC is regulated by the regulation "On the procedure for registering permanent representative offices of foreign enterprises in the PRC" dated March 5, 1983 and the instruction "On the procedure for opening permanent representative offices of foreign companies in the territory of the PRC" dated February 13, 1995. Registration of a representative office of any foreign company must be approved by the State Committee for Economics and Trade.

Such companies are intermediaries between foreign and Chinese partners, they are not independent legal entities and do not have the right to conduct business activities. The main purpose of the representative office is to coordinate cooperation between the Chinese side and the foreign company. The term of accreditation of a representative office is 3 years and can be repeatedly extended.

Company with a wholly foreign share capital

The operation of such companies is regulated by the "Law of the People's Republic of China on enterprises with 100% foreign capital", as well as the "Law of companies in China". Wholly foreign companies in the PRC may be organized for the purpose of producing goods, providing services, or trading, including imports or exports. Only foreign citizens can be among the founders of the company. The authorized capital should not exceed $140,000-200,000. During the first three months, 20% of the authorized capital is paid, the remaining 80% - over the next two years.

A company can operate in China for 30 years, after which it can be extended to 50 years. At the same time, it must use advanced technologies, produce high-quality products and export goods worth at least 50% of the value of all produced.

It should be noted that since 2003, the PRC has paid Special attention development of small and medium business. And already in 2005, the rapid growth of small enterprises was noted, accompanied by an increase in their profitability. Currently, the concept of small business in China refers to the activities of companies whose monthly sales do not exceed ¥20,000 ($3,032). They have a good reputation, give jobs and make a profit. That is why small foreign companies have every chance of success in China.

Procedure for starting a foreign business in China

Rapid economic growth attracts not only investors to China, but also private entrepreneurs who are ready to develop production and service companies in the country. Those who are interested in how to open a business in China for Russians and citizens of other states should first of all decide on the field of activity, and then on a specific region.

At the same time, be sure to make sure that the type of activity you are interested in is not among those prohibited for foreigners. The choice of a niche in the Chinese market will depend on the legal side of the issue and the tax rate.

The specific set of documents and the form of the enterprise also largely depend on the region of registration.

In general, the procedure for starting a business in China consists of the following steps:

1. Preliminary market analysis and obtaining the necessary consultations;
2. Search for a counterparty when opening a joint venture;
3. Preparation of the necessary package of documents and legalization in the territory of the PRC of existing foreign diplomas and certificates;
4. Registration in China.

A crucial stage is the choice of the form of ownership when opening a company. For those who are still thinking about how to start a business in China, experts recommend that they be wary of joint ventures. With this option, it will not be superfluous to have an advantage in the board of directors in terms of the number of participants, as well as a compatriot as a trusted representative of the company. Such a solution will allow you to fully control the activities of the company.

It is very important to know other specific features of organizing a business in China:

• different regions have different tax incentives;
• Chinese suppliers are not inclined to give discounts to foreign partners because of the extremely a large number offers;
• to solve problems with local authorities, tax and customs services, it is better to send Chinese employees;
• Proceedings in local courts can drag on for a long time.

A package of documents for starting a business in China

To register a foreign company in China, you will need to collect the following package of documents:

• the name of your company in Chinese, approved by the Administration of Industry and Commerce at the place of business registration;
• the names of all persons included in the management structure, with copies of their passports;
• legal address of the company and contact details;
• statutory documents;
• information about employees, namely the number, nationality, salary and bonuses;
• registration capital;
• business plan according to the established state model;
• other documents at the request of the authorities.

Where and how are foreign companies registered in China

To engage in business activities in China, you will need to obtain several permits.

1. Business Permit - issued by the local Office of the Ministry of Commerce (MOFCOM).
2. Permission to conduct business in economically encouraged zones - issued by the local office of the National Development and Reform Commission (National Development and Reform Commission (NDRC).
3. License - issued at the local office of the State Administration of Industry and Commerce (SAIC) within 30 days from the receipt of a business permit.

To obtain a license, you will need to submit the following documents:

• statement;
• statutory documents of the company;
• business permit certificate;
• AIC-approved company name in Chinese;
• certified copies of business licenses of all investors;
• a letter of recommendation from the bank (in which the main and additional accounts of the company are opened);
• list of management staff;
• other documents requested by the authorities.

After obtaining a business license, the following activities should be carried out without delay:

• prepare the company seal and obtain it from the Public Security Burea (Bureau public safety) permits for all outlets in the PRC;
• register with the tax office;
• register at customs;
• register with SAFE (State Administration of Foreign Exchange of the People's Republic of China).

How much does it cost to open a business in China

The procedure for registering a foreign business in China is inextricably linked with the payment of various fees for paperwork and the issuance of permits. In general, the total cost of covering them can be about $ 2,000. Add to that the travel costs, the cost of living in China and visa processing.

Often, entrepreneurs entrust the entire process of registering a foreign company in China to specialized agencies. The cost of their services can be $ 5000-6000. And this is in addition to all taxes and fees. That is, in general, registration of a company can cost $ 7,000-8,000.

Do not forget about the authorized capital of your company, which cannot be less than $140,000. However, at first it is enough to provide 20% of this amount.

Opening a company account in a Chinese bank

Corporate accounts in Chinese banks will be required to transfer the authorized capital of the company to them, as well as to store working capital in foreign currency and yuan - only three accounts that can be opened in various banks. When choosing banks, make sure they are approved by the State Administration of Foreign Exchange, or SAFE for short.

The procedure for opening an account takes about 15-20 days. This will require the personal presence of an authorized person or beneficiary.

The package of documents for opening company accounts includes:

• originals and certified copies of constituent documents;
• Certificate of Good Standing for companies that have existed for more than a year;
• original and certified copy of the power of attorney to open an account;
• a business plan containing information about the company's counterparties and the scope of its activities;
• decision of the board of directors to open an account;
• personal documents of the authorized person:
  • passport;
  • certificate of payment of telephone bills or utility bills to confirm the place of registration, dated no later than 2 months from the date of submission of documents;
• invoices and contracts confirming the experience of the account manager, dated no later than 3-6 months from the date of submission of documents;
• contact details of the account officer.

Issues of renting office space in China

To obtain a company's registered office, you will need to purchase or rent an office in China. At the same time, renting is the best option, since in this case the relocation of the company becomes many times easier. Sometimes such premises can be rented by two or three people at once.

The average monthly cost of renting an office without renovation and furniture in the business districts of Guangzhou is $20/sq. m. In the same place, an office with furniture in the central area will cost $ 600 / sq. m. m per month. In Beijing, the average cost of renting an office is $3,000 per month, but in Pudong square meter office space will cost you about $70 a month.

In addition to the customer reception and meeting rooms, for the storage of goods, raw materials and finished products you may need to rent warehouses in China. Average rental price storage facilities will be $0.30 per sq. m per day.

When choosing a suitable office space, you should pay attention to the following points:

• the area in which the object is located;
• transport accessibility, which is especially important for warehouses;
• the condition of the premises (on different floors of the same building there may be different repairs);
• the age of the building (objects over ten years old are considered old in China, and therefore renting in them is usually cheaper).

If you need to rent an office with a legal address in Guangzhou in China or in another region, you should pay attention to the following nuances:

• a long lease term reduces its cost;
• it is more profitable to rent fully furnished premises;
• when renting an office in the central areas of large cities, be prepared for frequent traffic jams;
• storage facilities should be chosen in close proximity to production in order to save on transport costs.

Popular business in China for citizens of the CIS countries

China attracts many businessmen from the CIS countries who develop their own production in the country or establish profitable trade.

Demanded business areas for citizens of the Russian Federation

Russian entrepreneurs are actively developing in China such industries as the production of ice cream and sweets. In the service sector, home veterinary services and dietitian consultations are gaining momentum. Among the industries, mini-factories for the production of beer have shown themselves well, producing a drink popular in China under a franchise from well-known Russian brands. Inexpensive restaurants of Russian cuisine are also popular.

In addition, the import of fish raw materials to the PRC is highly developed, followed by return deliveries of fillets. The business in Guangzhou for Russians, connected with the import of consumer goods and Chinese technology into the Russian Federation, does not lose its relevance.

Business in China for entrepreneurs from

One of the most promising areas is trade, namely the import of Chinese-made goods into the territory of Ukraine. Low price with good quality provide a stable demand for such products. Moreover, the price of goods for end user can increase by 2-3 times and remain quite attractive at the same time.

Restaurant business is another popular direction. Slavic cuisine in general and Ukrainian cuisine in particular is exotic for the Chinese. But they highly appreciate foreign confectioners and willingly consume sweets that are not traditional for China.

In the service sector, foreign language teaching centers, fitness centers and consulting and modeling agencies are of interest.

Entrepreneurship in China for Belarusians

Businessmen from Belarus have long mastered such areas as the restaurant business in Beijing and other cities, consulting companies, the production of cases for phones and equipment. Belarusian companies are successfully moving their production to China, using cheap labor and inexpensive raw materials.

Companies providing services to support transactions between Chinese and European partners are developing very actively.

As for the service sector, you will find Belarusian specialists both in translation agencies and in firms for hiring domestic staff / nannies. The popularity of models of Slavic appearance makes it profitable to organize relevant agencies.

Business in China for citizens of other CIS countries

Despite the fact that labor conflicts in China are sometimes resolved for a very long time and not always in favor of a foreign entrepreneur, the country is attracting more and more foreign businessmen.

The strengthening of China's political ties with the CIS countries contributed to the active development of economic relations. First of all, it is export Chinese goods to the territory of Armenia, Kazakhstan, Azerbaijan, Kyrgyzstan, Tajikistan, Moldova, Turkmenistan and Uzbekistan.

As for the Asian states, a lot of donkey skins are supplied to the PRC from here. Cooperation in the field of energy, construction and pharmacology is developing very actively. Moldova actively cooperates with the Chinese in the banking and energy sectors. In China, not only Moldovan wine is in demand, but also furniture and optical equipment.

Acquisition of a ready-made business in China

Selling a business in China is a very profitable business. Buying a ready-made business allows interested entrepreneurs to acquire an already established production or service company.

Lots of offers! As for prices, an outdoor mini-cafe located in a small room with a bar and several tables can be purchased for $1400-4000; a concrete mini-factory (concrete mixer and molds installed in a small room) will cost $17,000-40,000; a multifunctional food factory for the production of sausages - $ 1,000,000, a large premium restaurant (several floors with luxurious interior decoration) - $ 1,200,000; car assembly plant (only assembly is carried out) - for $ 4,000,000.

A professional valuation of a business in China will help you not to sell too cheap in this matter. When making a final opinion, the experts will take into account such factors as the present value of the object, the amount of funds spent on business development, financial performance indicators and net assets.

Chinese offshore zones

It is customary to refer to Chinese offshores as free economic zones (FEZs), which provide 10% of exports. And yet they are not offshore in their purest form.

The main advantages of registering companies in world offshores are zero taxation, no need to maintain complex accounting records, closed registers of directors and no need to undergo tedious audits. We won't see this in China. But here there is preferential taxation and favorable conditions for foreign investors. As for the Chinese market, with a strong blow for offshore companies was deoffshorization in 2017 in China a large number Russian enterprises. According to the decree of the President of the Russian Federation signed in 2014, all Russian companies registered abroad with a capital share of 25% or more must pay taxes to the Russian treasury. However, only if the company's profit is more than 10,000,000 ₽ ($168,461). The announced transitional period was three years and ended in 2017.

Have not lost their advantages and offshore bank details in China. Among their advantages are the absence of requests from the Chinese side about the beneficiaries of the company, the high degree of reliability of Chinese banks, the minimum list of documents for opening an account (the company's founding documents and the director's passport), the possibility of opening an account for a company from Hong Kong, a fast settlement system, a high degree of confidentiality and account freezing protection. It is no wonder that China's offshore zone is so popular among American, European and Russian businessmen.

Offshore companies in Hong Kong

In addition to Chinese free economic zones, the registration of foreign companies in Hong Kong is very popular. Foreign companies in this territory are not exempt from local taxes, are required to keep accounting records, and information about their directors is freely available from the moment of establishment. On the other hand, income tax in Hong Kong is 16.5%, and income received by companies outside this territory is exempted from it. There are practically no restrictions on the conduct of business activities by foreign companies, and there are no indirect taxes. Thus, although the territory is not offshore in its purest form, foreign companies have very significant advantages here.

Taxes for foreign enterprises in China

Tax revenues in the PRC make up 95% of the country's budget revenues. Not surprisingly, tax compliance is strictly enforced. In general, the taxation system in the country is characterized by a high degree of transparency. A number of preferential conditions on the territory of the SEZ and free port cities also contribute to attracting foreign capital. And preferential taxation of small businesses in China contributes to its development.

Owners of foreign enterprises in China will need to pay the following taxes:

Pros and cons of operating a foreign company in China

Any economic activity has both its prospects and advantages, and development risks that can lead to significant losses. The activity of foreign companies in China is no exception.

The indisputable advantages of opening and developing a foreign company in China include:

• significant tax incentives for small businesses;
• cheap labor and high performance labor;
• the possibility of replicating analogues of products of famous world brands;
• record low cost of raw materials.

At the same time, foreign entrepreneurs may face such difficulties as:

• distrust of the local population;
• legal subtleties of federal and local legislation;
• the language barrier;
• the cost of exporting finished products;
• difficulties in finding a suitable partner enterprise or organizing your own.

Nevertheless, small business in China, including foreign ones, is moving forward by leaps and bounds. And if there is a desire, everyone can earn.

Development trends of the insurance market in China

China's insurance market is recognized as the largest in the world in terms of insurance premiums collected by companies. Moreover, the share of Chinese insurance business grows annually. According to the latest forecasts, the Chinese insurance market in 2017 grew by 15%.

The main reasons for the popularity of insurance services are the increase in the population and the growth in production volumes.

Foreign insurers appeared on the territory of the country in the SEZ after the entry of the PRC into the WTO. Currently, more than 150 foreign and local companies provide insurance services in China. But more than 50% of the market is controlled by two - China Life Insurance and Ping An Insurance.

At the same time, the state completely exempts life insurance companies from taxes. Companies with a share of foreign capital pay 15% of profits against 33% tax for local organizations. The provision of services is carried out in five areas: pension insurance, basic medical, life insurance, unemployment insurance and insurance for the birth of a child.

Where to do business in China. How much to start with and how not to make a mistake: Video

* Calculations use average data for Russia

Business with China means high profits and beneficial cooperation. We have collected tips on how to organize a business at home, open a business without investments, and what are the main directions to follow.

Literally ten years ago, goods from China were no different high quality. They were produced from second-rate raw materials and using outdated technologies, so such products were not in great demand. Today, much has changed, so you can easily purchase on Chinese trading floors quality products at affordable prices. In this article, we will tell you how to start a business with China and how to make good money from it.

A few years ago, goods from China were associated with cheap, low-quality products. Today, more and more entrepreneurs are thinking about cooperation with China, and the Internet is full of questions in the spirit of “how to open a business with China” and “what is needed to cooperate with China”. Business with China is promising, shows constant growth and is striving for Russia itself. Why not take advantage of this?

Let's start answering with the main question of how much money you need to start. You can start a business with Chinese partners with... zero balance. Seriously! You can start a business selling Chinese goods without investment. The main thing is to have step by step instructions launch own business selling physical goods. She is the key to success.

Anyone who has a computer, Internet access, and a desire to learn all the nuances of this business and start making money can start the business of selling Chinese goods. Interesting ideas Newcomers, small entrepreneurs, and successful businessmen seeking to expand their business will find cooperation with China.

Dropshipping. How to open a business with China on dropshipping

It is quite possible to open a business with China without investments. The name of this business is "dropshipping". From English, this word is translated as "direct delivery". The idea of ​​a business is that the entrepreneur acts as an intermediary between the buyer and the seller. The scheme is simple: the entrepreneur orders the necessary goods on his own behalf, and sends the goods to the address of the buyer. Thus, the entrepreneur can work without leaving home and without spending his money, working on a prepaid basis. Everything that the entrepreneur takes on is organizational issues. He will need to register on the site, communicate with the seller if necessary, track the delivery of goods, etc.

Dropshipping has many advantages: the entrepreneur does not risk his own funds, does not need to hire employees and can handle the volume of work alone. In addition, for effective work, he only needs a computer and the Internet.

The main disadvantage of this business model lies in external factors: firstly, parcels from China are delivered for a long time; secondly, there is a risk of loss or delay at customs. Not every buyer is willing to wait that long. It should also be borne in mind that the scheme is old and proven, that is, there is a high risk of facing competition. Despite this, dropshipping remains enough profitable business, and the margin on the goods ranges from 10% to 100%.

What does it take to start a dropshipping business?

Find suppliers. There are thousands of them on the Internet, but choosing suppliers is not so easy. Among all the variety, you still need to find the most reliable and suitable goods in terms of quality and price, delivery conditions, assortment, etc. Most often, large online stores are chosen as suppliers, which have a huge assortment and sell it at wholesale prices. Now you can find online stores that are designed specifically for dropshipping (Banggood.com, TinyDeal.com, DX.com, Tmart.com, BuySKU.com, LightInTheBox.com and others). Making money with such sites is even easier, because they often provide partners with various bonuses. The choice of a supplier should be approached responsibly, because you are responsible for the quality of the goods and its delivery to customers.

Contact suppliers. To do this, you need to send an email to the support service indicating that you want to work with them on the dropshipping system. With a 95% chance you will receive a positive response. The main thing to pay attention to at this stage is a clear idea of ​​what products you will offer to customers, and how you will advertise the product. Suppliers should be contacted to ensure that they do not use their company logos when packing an order. After all, it is desirable for the buyer not to know from whom the goods are actually purchased.

Select a product. To decide on the direction, go to the usual popular online stores and see what products are in demand. It is advisable not to work with electronics - there are much more problems with marriage and returns with it. Therefore, an important criterion for choosing a product is the minimum probability of a return. You can take a chance and offer customers something interesting, unusual. You can also earn on exclusives.

Choose an advertising method. You can create a group of your online store in social networks. Having spent several thousand on the active promotion of goods through accounts, you will quickly find buyers. Don't forget about free advertising options - post products on bulletin boards and auctions. Today, there are many online trading platforms: market.yandex.ru, tiu.ru, meshok.net and others.

We consider income and expenses. The main amount of expenses falls on the promotion of your online store. This takes into account the costs of promoting a group in social networks, paying for advertisements for placement in the top, and other things. As mentioned earlier, you can do without material costs at all. However, you must understand that the more investments in the business, the faster buyers will appear and the more you can earn.

How much can you earn with dropshipping?

This is a rather difficult question. But not because an unpromising truth awaits you, but because it is impossible to name specific amounts. The amount of your income depends entirely on the quality of your work and the product chosen for sale. On the Internet, you can read many stories about how entrepreneurs earn 1 million on dropshipping in a year. net profit and provide compelling evidence. Of course, these stories are not a guarantee that you will have the same. But this is a good guideline that will encourage you to start your own business.

It is possible to increase your income from dropshipping thanks to one life hack - cashbacks. Everyone has heard at least once about the opportunity to return a certain percentage of their purchases with the help of special cashback services. Users actively use them, trying to get their 50 rubles back from a personal purchase. Just imagine how much money you can return, having a turnover of many thousands.

Landing. How to open a business with China through a landing page

You can continue the idea of ​​dropshipping, but ennoble it. And create not a simple online store on a social network, but an attractive selling landing page. This is the name of one-page sites created for the sale of one product. The task of the landing page is to transform the site visitor into the status of a buyer, to encourage them to take a targeted action (purchase a product). The main advantage of a landing page is its high efficiency. If regular sites bring 15% of sales from total number visits, then one-page sites are able to bring 50%. Therefore, today this method of sales is very popular.

To open a business on a landing page, you should adhere to the following algorithm:

Select a product or service to sell through a landing page. How to choose what to sell? See what others are selling: it might give you an idea or convince you to leave a niche that is already highly competitive. You can sell anything through landings. It's important that it be special offer. It is recommended to study the trends of foreign markets - often the fashion for goods comes to us from abroad. If you guess with the trend and have time to occupy a niche, you can make good money.

Select a supplier. Everything is simple here: when you have decided on a product, study the offers of suppliers. Choose favorable conditions, not forgetting about the reliability of the supplier.

Develop a unique selling proposition. Here you need to form a clear understanding: what you are selling, to whom you are selling, why this product should be bought from you. Ideal for a landing page – your offer must be unique. It doesn't mean you have to sell latest developments or rare items. The unique selling proposition includes not only the product itself, but also the price, Additional services, format of cooperation, etc. For example, you can offer record delivery times, original packaging, the most low price or a product that has no analogues on the market. The answer to the question "to whom is the product sold?" needed to set the price. You need to understand what target audience your product is designed for. Often the answer lies in the product you are going to sell.

Develop a landing. Creating a one page website is a process that will determine 80% of your success. The right landing in itself is a sales tool. There are two options for creating a landing page: turn to professionals and order a one-page site from them, or use a website builder to create a one-page site yourself. A professional landing page will be efficient and optimized. In a landing page, every little thing is important, up to the color scheme of the site and the location of the buttons on the page. Therefore, we recommend spending money on professional development. The cost of a landing ranges from 10,000 rubles and more. There are studios that ask for 50,000 rubles for their work, but this package usually includes not only the creation of a one-pager, but also assistance in its promotion. If you want to save money and feel the strength to create a landing page, you can use website builders. You can easily find such tools and, after spending 2-3 hours, make yourself a one-page website.

Test the site. The product is selected, the one-pager is created - now is the time to test various promotion methods to choose best option. The main sources of traffic are: social networks, contextual advertising, search promotion, thematic and industry resources. We will not dwell on each of them. Let's just say that each of the tools needs to be tested to find the perfect formula to attract your target audience.

Buy a product. No wonder this item is located almost at the end of the algorithm. Why is it recommended to purchase goods only after the test launch of the site? In order to avoid mistakes with the choice of goods and the formation of a unique selling proposition. you spend less money and forces for a test launch of the site, rather than for the purchase of a batch of goods. In the first batch, it is better to buy not very many goods - it is better to invest extra money in promotion than to spend it on goods that will be in stock.

Arrange delivery. You can use the services of the Russian Post, or private courier services. Delivery by Russian Post is cheaper, but the delivery time may slow down your business. Delivery transport companies costs more. But you can include shipping costs in the price of the goods or indicate it as an extra. payment for your customers.

Expand business. When the landing is set up and makes a profit, you can think about expanding your business. Today, there are many business projects on the franchising market that have come out of the idea of ​​a landing page.

A business on landing pages can pay off in the first month of work. The average monthly profit is 65,000 rubles. For a home business, this is a good indicator.

Chinese equipment. How to make money on the purchase of Chinese equipment

For small businesses, the idea of ​​​​purchasing Chinese equipment is great. Taking the first steps in business, the entrepreneur seeks to save on initial costs. In most cases, you can find special equipment and components at a bargain price only among Chinese suppliers. To date, no country in the world can boast of such reasonable prices for business equipment.

The Asian market is able to meet the needs in any field. Many people note that Chinese equipment is not inferior in quality to European counterparts, but at the same time it costs several times cheaper.

Ready-made ideas for your business

It is also important that manufacturers provide comprehensive support. They offer the supply of materials for production, set up and adapt equipment, train personnel, provide guarantees, maintenance, and, if necessary, even repair of the delivered equipment. Such a service will be appreciated in any case, and even more so in a small business. But when choosing this direction, one should also prepare for certain difficulties of cooperation. This is a language barrier, and difficulties in the delivery and customs clearance of large-sized equipment. Also, when ordering equipment, it is always necessary to clarify the possibility of its adjustment by factory specialists. Some companies do not provide such a service, which may cause difficulties for the entrepreneur.

What equipment is most often purchased in China? Manufacturing machines building materials, plastic products or packaging and containers. Analysts also have high hopes for 3D printers, which can be used to manufacture components, souvenir products, toys, jewelry and even clothes. Among Chinese products, you can find a large range of 3D printing equipment.

How to buy equipment in China?

The procurement business algorithm with China includes several steps:

Find a supplier search site (Made-in-China, Alibaba, etc.). Check the reliability of the supplier by examining his offer, reviews, website. All data should be studied in detail: the year the company was founded, the availability of the necessary certificates, annual turnover, assortment, etc.

Select the most attractive companies and send a request for a quotation for the business equipment of interest. Find out if they cooperate with partners from Russia. After that, you can contact the indicated Russian partners and ask for confirmation of the trustworthiness of the partners. Of course, it is not a fact that you will be given a full resume of the supplier and provide all the information, but still this point should be kept in mind.

Before purchasing equipment, you need to conduct a thorough analysis commercial offers and choose the best one.

Negotiate with the supplier, agree on a price and a complete set of equipment.

Negotiate the contract, terms of transportation. The contract is usually concluded in two languages ​​- English and Chinese. After signing the contract, it is necessary to make a transaction passport, after which you can make an advance payment.

Pay for the order. All manufacturers require an advance payment of 30-50% of the order amount. The average production time for equipment is 30-40 days. The balance is paid upon presentation of documents that confirm the fact of shipment of the goods.

Most reliable way payment - revocable letter of credit. Thanks to him, the buyer can save money in the event of an unscrupulous supplier.

Before sending the documents, you should ask the Chinese side to send copies of the documents to make sure they are correct.

Before making a decision to buy equipment in China, you need to carefully consider and calculate everything. You should start this business only if the savings cover all shipping costs.

Export to China. How to make money exporting to China?

Business with China can be built not only on the resale of Chinese goods. Because the Chinese market is not only a huge volume of cheap products, but also a promising sales market with a potential coverage of more than 1 billion people. Therefore, both novice entrepreneurs and already established successful businessmen are interested in doing business with China. What can be supplied to the Chinese market? The most demanded in China are agricultural products, semi-finished products, raw materials for woodworking, chemical, food and light industry, chocolate and candy, pine nuts. Moreover, the business of the Celestial Empire may be interested even in products that are considered unclaimed in Russia. For example, if domestic poultry farms are used to throwing away chicken and duck feet, then in China they are in great demand.

To arrange export deliveries to China, it is necessary to have a declaration, and in some cases a shipping document will be sufficient. The declaration is drawn up independently or with the help of a broker at customs. Some goods are allowed to be exported only if there is a specially confirmed permit and certificate.

Before exporting, you must go through the following steps:

To study the Chinese market and the pricing procedure.

Find future buyers.

Prepare a contract for export and insurance of goods.

Overcome the customs registration procedure in Russia and customs clearance in China.

For effective cooperation with China, foreign trade participants advise to carry out a lot of preparatory work, which includes:

visiting China to study the market;

delivery of goods to China, selection of a warehouse and best way sending goods;

preparation of demonstration material in Chinese for negotiations with potential clients;

providing a small batch of products for sale.

All this requires large financial and time costs. But it should be borne in mind that the export of Russian goods to China is growing every year. The prospects for the direction are very high, and therefore, to expand your business, you should consider this option.

Checklist for starting a business in China

Business with China is a relevant direction for any entrepreneur. In almost every area, you can optimize costs if you make purchases in China. In addition, the resale of Chinese goods is a great idea for a home business, which, if properly organized and promoted, will allow you to earn income several times higher than the average salary. For small businesses, it will be beneficial to purchase Chinese equipment, and for more large companies we can consider a promising option of supplying our products to China.

No matter how much business with China may seem like a cozy golden coast, to which it is only worth mooring, this is not entirely true.
In order for a business with the Middle Kingdom to be profitable, you must adhere to the following recommendations:

constantly explore the market in search of new business ideas with China;

adhere to the choice of a specific product group, without trying to cover the entire market;

check suppliers carefully;

conclude written contracts for the supply of products;

stipulate in advance the conditions for the return of goods in the event that a defective batch is received.

The most important thing is that the business you are doing has demand from consumers and is interesting to you as an entrepreneur. Then success is guaranteed to you.

Ready-made ideas for your business

Running your own Youtube channel can hardly be called a full-fledged business, but to some extent this applies to entrepreneurial activity. Moreover, today there are real examples of th...

The volume of investment costs in opening an online store for youth clothing is 760,000 rubles. Simple (PP) and discounted (DPP) payback period is 6 months.

Launching a mobile application development company from the very beginning: finding premises, finding investments, about the main (original) business idea and how it changed during the year, about successes and failures.

Today, it is not difficult to register a business in China. One of the disadvantages of such registration is a rather long decision on this issue (approximately one year) due to the significant bureaucratization of the PRC government. However, to facilitate and speed up the registration procedure, you can turn to intermediary companies, whose services will cost you 5-6 thousand dollars, and including the payment of various taxes and fees, you will have to spend another 2 thousand dollars. It is much easier to do this (in financial terms) register your business, for example, in Hong Kong than in Shanghai or Beijing, this circumstance must also be taken into account.

Large (even too) initial authorized capital is also a minus of registration in China. So, to open a trading company, you need to have about 140 thousand US dollars, of which future owner pays 20 percent of the amount at the time of registration, and the remaining 80 percent will need to be paid within two years from the start of registration of the firm (company).

The procedure for registering a company in China.

Submitting documents to register your company in China is a procedure consisting of several steps. First you need to write an application and collect the necessary package of documents for this, for submission to the competent authority. Then this package of documents must be approved, after which the registration of your company with the Administrative Board of Commerce and Industry of China follows. The next step should be to open an account in one of the Chinese banks. Next, you need to submit documents to the China Foreign Exchange Administration for the purpose of checking them, and also obtain the code of your new company by submitting documents to tax office China. The next step is to order a print for the company, and as a result, you need to obtain a permit, with which you will have the right to hire foreign and Chinese workers.

The nature and type of your intended activity will be a determining indicator of which government departments you will need to provide a package of documents. The People's Bank of China will accept your documents for consideration if you open an insurance or financial company. And the ministry foreign trade will consider the submitted documents if you plan to open a transport or trading company. The Ministry of Communications of the People's Republic of China accepts documents for the opening of companies whose activities will be related to sea ​​transportation. And the Civil Aviation Authority will consider the documents required for the registration of the airline.

At the time of submission of documents, you will be provided with a specific civil servant, whose duties will include monitoring the correctness of the submission of your documents to all relevant authorities in China.

In addition to the above application for opening a company in China, the following documents will also be required: 1) the state of your company's account (bank statement); 2) passport or other document proving the identity of the founder of the company - a copy; 3) five photographs (usually in 6x6 format); 4) a document confirming the appointment of the director, signed by the founder of the company; 5) a lease agreement for the premises for the company, as well as documents from the landlord: a document stating that the landlord owns an office on legal grounds and that he has a license for financial activities in China.

An additional package of documents may be needed if you plan to open a branch of a foreign company in China. These documents include: firstly, an application for registration of a foreign company in China; secondly, the availability of funds in the bank of the parent company - an extract; thirdly, complete information about employees who will work in China in the future; and fourthly, contracts and agreements entered into by the parent company with all enterprises in China.

The defining moment for you may be the fact that doing business in China is quite profitable, despite the abundance of bureaucracy in the process of registering a company. This is facilitated by both high demand for products and relatively cheap labor resources, with the help of which you can get a good profit in a fairly short time of your company's activity.

In addition, to open a company in the PRC with only foreign capital, you will need only one founder, who can also act as a director.

And finally, back to the beginning. Even at the stage of planning your future business, you need to correctly assess various factors, which may affect the outcome of the case, this is the city in which your future work is planned, and the type of activity that you plan to do, and much more. All these carefully thought out and planned moments will significantly affect the further development of events related to the registration process, and possibly saving your finances.

At the same time, production capabilities allow the production of almost any item, from souvenirs to large household appliances. And if you have a desire that is successfully combined with an opportunity, we recommend that you consider several successful options.

This is probably the very first idea that comes to everyone's mind. We like to visit cafes specializing in foreign cuisine. For many dishes Japanese cuisine, such as sushi and rolls, are a must for luxury living. Based on this, it can be assumed that in China, associated with Russian cuisine, will bring a stable income.

How things really are

In fact, the situation looks different. Unfortunately, our food is “heavy” for the stomachs of the Chinese, so they prefer to eat national dishes.

However natives of Russia and foreigners are not averse to visiting establishments with Russian cuisine, so with the right choice of location, you can achieve a certain stability in income.

Groupage cargo delivery

This is a more promising direction, which, with the growing popularity of goods from China, can grow into a serious business. The point is to organize the delivery of goods, but not simple, but as a team.

Who needs such delivery?

Sending a container that is not fully loaded is unprofitable, and waiting for restocking is unnerving customers. You collect cargo that was not sent from several companies, gaining a full container.

Opening of cold store

In China, no matter how strange it may sound, there are not enough refrigerated warehouses. This is worth considering, since when opening the corresponding premises with necessary equipment You can receive very large orders.

Investments

For this business in China, of course, you will need to spend money. And not only for opening a company, renting premises for a warehouse, but also for the very refrigeration equipment. But do not forget that in the Middle Kingdom, such equipment is cheaper. You know where to order, right?

company registration firm

Sounds stupid, doesn't it? In fact, this is a good business idea. The fact is that the creation of a company registered in the name of a foreigner requires paperwork. It is necessary to collect a lot of certificates and submit them to a hundred authorities. And the process itself is long. However, it costs clean with legal side a firm that does not yet have an expensive Chinese partner. And in terms of currency, too.

Production in China

We will not remind you that now even branded items are made in China. Appliances, accessories and clothing well-known manufacturers produced by hard-working inhabitants of the eastern country.

Therefore, you can, as food, clothes, shoes, and any other components of modern life.

Of course, you will have to spend a lot of time and money searching for suitable option, contracts, etc. But in the end, if the sales market is established, this type of business will bring a stable income.

If desired, a business from scratch in China is available to everyone, and there are a lot of ideas. Just do not forget about the well-known Russian proverb, in which they harness for a long time. This also applies to China, because here relationships are established very carefully, literally by a centimeter. So be patient and don't expect quick results.